Animated Chart: G7 vs. BRICS by GDP (PPP)
Fifty years ago, the government finance heads from the UK, West Germany, France, and the U.S. met informally in the White House’s ground-floor library to discuss the international monetary situation at the time. This is the origin story of the G7.
This initial group quickly expanded, adding Japan, Italy, and Canada, to solidify a bloc of the biggest non-communist economies at the time. As industrialized countries that were reaping the benefits of the post-war productivity boom, they were economic juggernauts, with G7 economic output historically contributing around 40% of global GDP.
However, the more recent emergence of another international group, BRICS (Brazil, Russia, India, China, and South Africa), has been carving out its own section of the global economic order.
This animation from James Eagle uses data from the International Monetary Fund (IMF) and charts the percentage contribution of the G7 and BRICS members to the world economy. Specifically it uses GDP adjusted for purchasing power parity (PPP) using international dollars.
Charting the Rise of BRICS vs. G7
The acronym “BRIC”, developed by Goldman Sachs economist Jim O’Neill in 2001, was used to identify four fast-growing economies in similar stages of development. It wasn’t until 2009 that their leaders met and formalized their relationship, later inviting South Africa to join in 2010.
While initially banded together for investment opportunities, in the last decade, BRICS has become an economic rival to G7. Several of their initiatives include building an alternate global bank, with dialogue underway for a payment system and new reserve currency.
Below is a quick look at both groups’ contribution to the world economy in PPP-adjusted terms.
|Global GDP Share||1992||2002||2012||2022|
A major contributing factor to BRICS’ rise is Chinese and Indian economic growth.
After a period of rapid industrialization in the 1980s and 1990s, China’s exports got a significant boost after it joined the World Trade Organization in 2001. This helped China become the world’s second largest economy by 2010.
India’s economic rise has not been quite as swift as China’s, but by 2022, the country ranked third with a gross domestic product (PPP) of $12 trillion. Together the two countries make up nearly one-fourth of the PPP-adjusted $164 trillion world economy.
The consequence of using the PPP metric—which better reflects the strengths of local currencies and local prices—is that it has an outsized multiplier effect on the GDPs of developing countries, where the prices of domestic goods and services tend to be cheaper.
Below, we can see both the nominal and PPP-adjusted GDP of each G7 and BRICS country in 2023. Nominal GDP is measured in USD with market-rate currency conversion, while the adjusted GDP uses international dollars (using the U.S. as a base country for calculations) which better account for cost of living and inflation.
|Country/Group||Membership||Nominal GDP (2023)||PPP GDP (2023)|
|🇿🇦 South Africa||BRICS||$0.4T||$1.0T|
By the IMF’s projections, BRICS countries will constitute more of the world economy in 2023 ($56 trillion) than the G7 ($52 trillion) using PPP-adjusted GDPs.
How Will BRICS and G7 Compare in the Future?
China and India are in a stage of economic development marked by increasing productivity, wages and consumption, which most countries in the G7 had previously enjoyed in the three decades after World War II.
By 2028, the IMF projects BRICS countries to make up one-third of the global economy (PPP):
|Country by GDP (PPP)||Membership||% World Economy (2028p)|
|🇿🇦 South Africa||BRICS||0.5%|
BRICS vs. the World?
The economic rise of BRICS carries geopolitical implications as well.
Alongside different political ideals, BRICS’ increasing power gives its member countries financial muscle to back them up. This was put into sharp perspective after the 2022 Russian invasion of Ukraine, when both China and India abstained from condemning the war at the United Nations and continued to buy Russian oil.
While this is likely concerning for G7 countries, the group of developed countries still wields unparalleled influence on the global stage. Nominally the G7 still commands a larger share of the global economy ($46 trillion) than BRICS ($27.7 trillion). And from the coordination of sanctions on Russia to sending military aid to Ukraine, the G7 still wields significant influence financially and politically.
In the next few decades, especially as China and India are earmarked to lead global growth while simultaneously grappling with their own internal demographic issues, the world order is only set to become more complex and nuanced as these international blocs vie for power.
This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.
Visualizing the $105 Trillion World Economy in One Chart
How much does each country contribute to the $105 trillion world economy in 2023, and what nations are seeing their nominal GDPs shrink?
Visualizing the $105 Trillion World Economy in One Chart
By the end of 2023, the world economy is expected to have a gross domestic product (GDP) of $105 trillion, or $5 trillion higher than the year before, according to the latest International Monetary Fund (IMF) projections from its 2023 World Economic Outlook report.
In nominal terms, that’s a 5.3% increase in global GDP. In inflation-adjusted terms, that would be a 2.8% increase.
The year started with turmoil for the global economy, with financial markets rocked by the collapse of several mid-sized U.S. banks alongside persistent inflation and tightening monetary conditions in most countries. Nevertheless, some economies have proven to be resilient, and are expected to register growth from 2022.
Ranking Countries by Economic Size in 2023
The U.S. is expected to continue being the biggest economy in 2023 with a projected GDP of $26.9 trillion for the year. This is more than the sum of the GDPs of 174 countries ranked from Indonesia (17th) to Tuvalu (191st).
China stays steady at second place with a projected $19.4 trillion GDP in 2023. Most of the top-five economies remain in the same positions from 2022, with one notable exception.
India is expected to climb past the UK to become the fifth-largest economy with a projected 2023 GDP of $3.7 trillion.
Here’s a look at the size of every country’s economy in 2023, according to IMF’s estimates.
|Rank||Country||GDP (USD)||% of Total|
|12||🇰🇷 South Korea||$1,722B||1.64%|
|18||🇸🇦 Saudi Arabia||$1,062B||1.01%|
|39||🇿🇦 South Africa||$399B||0.38%|
|41||🇭🇰 Hong Kong||$383B||0.36%|
|46||🇨🇿 Czech Republic||$330B||0.31%|
|51||🇳🇿 New Zealand||$252B||0.24%|
|64||🇵🇷 Puerto Rico||$121B||0.11%|
|77||🇨🇷 Costa Rica||$78B||0.07%|
|80||🇨🇮 Côte d'Ivoire||$77B||0.07%|
|102||🇸🇻 El Salvador||$34B||0.03%|
|110||🇧🇦 Bosnia &|
|116||🇧🇫 Burkina Faso||$21B||0.02%|
|125||🇵🇸 West Bank|
|133||🇧🇳 Brunei Darussalam||$16B||0.01%|
|134||🇲🇰 North Macedonia||$15B||0.01%|
|135||🇬🇶 Equatorial Guinea||$15B||0.01%|
|143||🇰🇬 Kyrgyz Republic||$12B||0.01%|
|151||🇸🇸 South Sudan||$7B||0.01%|
|160||🇸🇱 Sierra Leone||$4B||0.00%|
|168||🇨🇻 Cabo Verde||$2B||0.00%|
|170||🇱🇨 Saint Lucia||$2B||0.00%|
|171||🇹🇱 East Timor||$2B||0.00%|
|174||🇦🇬 Antigua & Barbuda||$2B||0.00%|
|175||🇸🇲 San Marino||$2B||0.00%|
|176||🇸🇧 Solomon Islands||$2B||0.00%|
|180||🇰🇳 Saint Kitts|
|181||🇻🇨 Saint Vincent|
& the Grenadines
|184||🇸🇹 São Tomé|
|187||🇲🇭 Marshall Islands||$0.3B||0.00%|
Note: Projections for Afghanistan, Lebanon, Pakistan, Sri Lanka and Syria are missing from IMF’s database for 2023.
Here are the largest economies for each region of the world.
- Africa: Nigeria ($506.6 billion)
- Asia: China ($19.4 trillion)
- Europe: Germany ($4.3 trillion)
- Middle East: Saudi Arabia ($1.1 trillion)
- North & Central America: U.S. ($26.9 trillion)
- Oceania: Australia ($1.7 trillion)
- South America: Brazil ($2.1 trillion)
Ranked: 2023’s Shrinking Economies
In fact, 29 economies are projected to shrink from their 2022 sizes, leading to nearly $500 billion in lost output.
Russia will see the biggest decline, with a projected $150 billion contraction this year. This is equal to about one-third of total decline of all 29 countries with shrinking economies.
Egypt (-$88 billion) and Canada (-$50 billion) combined make up another one-third of lost output.
In Egypt’s case, the drop can be partly explained by the country’s currency (Egyptian pound), which has dropped in value against the U.S. dollar by about 50% since mid-2022.
Russia and Canada are some of the world’s largest oil producers and the oil price has fallen since 2022. A further complication for Russia is that the country has been forced to sell oil at a steep discount because of Western sanctions.
Here are the projected changes in GDP for all countries facing year-over-year declines:
|Country||Region||2022–23 Change (USD)||2022–23 Change (%)|
|🇨🇦 Canada||North America||-$50.17B||-2.3%|
|🇸🇦 Saudi Arabia||Middle East||-$46.25B||-4.2%|
|🇰🇼 Kuwait||Middle East||-$19.85B||-10.8%|
|🇴🇲 Oman||Middle East||-$9.77B||-8.5%|
|🇨🇴 Colombia||South America||-$9.25B||-2.7%|
|🇦🇪 UAE||Middle East||-$8.56B||-1.7%|
|🇿🇦 South Africa||Africa||-$6.69B||-1.6%|
|🇶🇦 Qatar||Middle East||-$5.91B||-2.6%|
|🇮🇶 Iraq||Middle East||-$2.47B||-0.9%|
|🇹🇱 East Timor||Asia||-$1.67B||-45.7%|
|🇬🇶 Equatorial Guinea||Africa||-$1.35B||-8.2%|
|🇾🇪 Yemen||Middle East||-$1.12B||-5.4%|
|🇸🇸 South Sudan||Africa||-$0.86B||-10.9%|
|🇸🇱 Sierra Leone||Africa||-$0.42B||-10.6%|
|🇸🇷 Suriname||South America||-$0.05B||-1.4%|
The presence of Saudi Arabia, Norway, Kuwait, and Oman in the top 10 biggest GDP contractions further highlights the potential impact on GDP for oil-producing countries, according to the IMF’s projections.
More recently, producers have been cutting supply in an effort to boost prices, but concerns of slowing global oil demand in the wake of a subdued Chinese economy (the world’s second-largest oil consumer), have kept oil prices lower than in 2022 regardless.
The Footnote on GDP Forecasts
While organizations like the IMF have gotten fairly good at GDP forecasting, it’s still worth remembering that these are projections and assumptions made at the beginning of the year that may not hold true by the end of 2023.
For example, JP Morgan has already changed their forecast for China’s 2023 real GDP growth six times in as many months after expectations of broad-based pandemic-recovery spending did not materialize in the country.
The key takeaway from IMF’s projections for 2023 GDP growth rests on how well countries restrict inflation without stifling growth, all amidst tense liquidity conditions.
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